SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis
USA - NASDAQ:SHLS - US82489W1071 - Common Stock
10.23 USD
+0.98 (+10.59%)
We assign a fundamental rating of 6 out of 10 to SHLS. SHLS was compared to 93 industry peers in the Electrical Equipment industry. SHLS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SHLS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SHLS was profitable.
SHLS had a positive operating cash flow in the past year.
SHLS had positive earnings in each of the past 5 years.
SHLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHLS has a better Return On Assets (2.66%) than 77.42% of its industry peers.
Looking at the Return On Equity, with a value of 3.67%, SHLS is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
The Return On Invested Capital of SHLS (4.09%) is better than 70.97% of its industry peers.
SHLS had an Average Return On Invested Capital over the past 3 years of 7.05%. This is below the industry average of 10.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 3.67% | ||
| ROIC | 4.09% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
1.3 Margins
Looking at the Profit Margin, with a value of 5.28%, SHLS is in the better half of the industry, outperforming 79.57% of the companies in the same industry.
SHLS's Profit Margin has declined in the last couple of years.
SHLS has a better Operating Margin (10.32%) than 79.57% of its industry peers.
In the last couple of years the Operating Margin of SHLS has declined.
With a decent Gross Margin value of 33.70%, SHLS is doing good in the industry, outperforming 76.34% of the companies in the same industry.
In the last couple of years the Gross Margin of SHLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.32% | ||
| PM (TTM) | 5.28% | ||
| GM | 33.7% |
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHLS is destroying value.
Compared to 1 year ago, SHLS has less shares outstanding
Compared to 5 years ago, SHLS has about the same amount of shares outstanding.
SHLS has a better debt/assets ratio than last year.
2.2 Solvency
SHLS has an Altman-Z score of 5.27. This indicates that SHLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SHLS (5.27) is better than 79.57% of its industry peers.
SHLS has a debt to FCF ratio of 10.90. This is a negative value and a sign of low solvency as SHLS would need 10.90 years to pay back of all of its debts.
The Debt to FCF ratio of SHLS (10.90) is better than 67.74% of its industry peers.
SHLS has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
SHLS's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. SHLS outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 10.9 | ||
| Altman-Z | 5.27 |
ROIC/WACC0.48
WACC8.54%
2.3 Liquidity
SHLS has a Current Ratio of 2.34. This indicates that SHLS is financially healthy and has no problem in meeting its short term obligations.
SHLS has a Current ratio of 2.34. This is in the better half of the industry: SHLS outperforms 67.74% of its industry peers.
SHLS has a Quick Ratio of 1.64. This is a normal value and indicates that SHLS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.64, SHLS is doing good in the industry, outperforming 65.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for SHLS have decreased strongly by -40.82% in the last year.
The Earnings Per Share has been decreasing by -0.95% on average over the past years.
The Revenue for SHLS has decreased by -11.95% in the past year. This is quite bad
SHLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.54% yearly.
EPS 1Y (TTM)-40.82%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%0%
Revenue 1Y (TTM)-11.95%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%11.68%
3.2 Future
The Earnings Per Share is expected to grow by 15.79% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.54% on average over the next years. This is quite good.
EPS Next Y22.89%
EPS Next 2Y22.55%
EPS Next 3Y20.26%
EPS Next 5Y15.79%
Revenue Next Year17.29%
Revenue Next 2Y15.88%
Revenue Next 3Y14%
Revenue Next 5Y11.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
SHLS is valuated quite expensively with a Price/Earnings ratio of 35.28.
Compared to the rest of the industry, the Price/Earnings ratio of SHLS indicates a somewhat cheap valuation: SHLS is cheaper than 75.27% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.34. SHLS is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 20.64 indicates a rather expensive valuation of SHLS.
Based on the Price/Forward Earnings ratio, SHLS is valued cheaply inside the industry as 86.02% of the companies are valued more expensively.
SHLS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.28 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
72.04% of the companies in the same industry are more expensive than SHLS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHLS is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 141.66 | ||
| EV/EBITDA | 30.8 |
4.3 Compensation for Growth
SHLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SHLS has a very decent profitability rating, which may justify a higher PE ratio.
SHLS's earnings are expected to grow with 20.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y22.55%
EPS Next 3Y20.26%
5. Dividend
5.1 Amount
No dividends for SHLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SHLS (10/14/2025, 12:29:07 PM)
10.23
+0.98 (+10.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners117.35%
Inst Owner Change0.45%
Ins Owners0.81%
Ins Owner Change5.02%
Market Cap1.71B
Analysts79.23
Price Target7.55 (-26.2%)
Short Float %13.02%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.47%
Min EPS beat(2)-23.86%
Max EPS beat(2)18.92%
EPS beat(4)1
Avg EPS beat(4)-10.95%
Min EPS beat(4)-23.86%
Max EPS beat(4)18.92%
EPS beat(8)4
Avg EPS beat(8)-1.9%
EPS beat(12)8
Avg EPS beat(12)10.2%
EPS beat(16)11
Avg EPS beat(16)4.34%
Revenue beat(2)2
Avg Revenue beat(2)5%
Min Revenue beat(2)3.87%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)3.52%
Min Revenue beat(4)1.47%
Max Revenue beat(4)6.14%
Revenue beat(8)5
Avg Revenue beat(8)1.19%
Revenue beat(12)9
Avg Revenue beat(12)2.72%
Revenue beat(16)10
Avg Revenue beat(16)1.43%
PT rev (1m)3.09%
PT rev (3m)16.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.49%
EPS NY rev (1m)0.83%
EPS NY rev (3m)9.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.28 | ||
| Fwd PE | 20.64 | ||
| P/S | 4.28 | ||
| P/FCF | 141.66 | ||
| P/OCF | 54.48 | ||
| P/B | 2.98 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 30.8 |
EPS(TTM)0.29
EY2.83%
EPS(NY)0.5
Fwd EY4.84%
FCF(TTM)0.07
FCFY0.71%
OCF(TTM)0.19
OCFY1.84%
SpS2.39
BVpS3.44
TBVpS2.8
PEG (NY)1.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 3.67% | ||
| ROCE | 5.79% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.85% | ||
| OM | 10.32% | ||
| PM (TTM) | 5.28% | ||
| GM | 33.7% | ||
| FCFM | 3.02% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
ROICexc(3y)7.24%
ROICexc(5y)8.93%
ROICexgc(3y)8.98%
ROICexgc(5y)20.95%
ROCE(3y)9.98%
ROCE(5y)12.18%
ROICexcg growth 3Y-14.52%
ROICexcg growth 5Y-38.93%
ROICexc growth 3Y-7.16%
ROICexc growth 5Y-15.5%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 10.9 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 147.99% | ||
| Cap/Sales | 4.83% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 57.78% | ||
| Profit Quality | 57.21% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 5.27 |
F-Score7
WACC8.54%
ROIC/WACC0.48
Cap/Depr(3y)65.64%
Cap/Depr(5y)54.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.8%
Profit Quality(3y)176.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.82%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%0%
EPS Next Y22.89%
EPS Next 2Y22.55%
EPS Next 3Y20.26%
EPS Next 5Y15.79%
Revenue 1Y (TTM)-11.95%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%11.68%
Revenue Next Year17.29%
Revenue Next 2Y15.88%
Revenue Next 3Y14%
Revenue Next 5Y11.54%
EBIT growth 1Y-19.67%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year81.24%
EBIT Next 3Y35.24%
EBIT Next 5Y24.63%
FCF growth 1Y-84.63%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y-62.6%
OCF growth 3YN/A
OCF growth 5Y17.31%